Moving iMage Technologies Announces First Quarter Fiscal 2024 Results

Revenue increased 13%; gross profit increased 17%; gross margin of 27.4%; GAAP and Non-GAAP EPS of $0.04

Moving iMage Technologies, Inc. (NYSE:MITQ), ("MiT"), a leading technology and services company for cinema, Esports, stadiums, arenas and other out-of-home entertainment venues, today announced results for its first quarter ended September 30, 2023.

"We started the new fiscal year on a strong note with double-digit growth in revenue, gross margin expansion and profits," said Phil Rafnson, chairman and chief executive officer, MiT. "We've been talking about a technology refresh cycle for several quarters now, and this quarter's results were encouraging, as projector replacements and our ADA compliance products were a key driver. We also made progress on several of the newer initiatives that we expect to drive revenue growth and profits over the next several years, including receiving our first orders for LEA Professional's smart power amplifiers.

"From a capital allocation perspective, we put in place a 10b5-1 trading program for our previously approved share buyback at the end of the quarter. This meant that beginning November 1, the number of trading days that we could repurchase shares increased to approximately 250 days per year versus 90 days previously."

First Quarter Fiscal 2024 Highlights (versus Fiscal 1Q23)

• Revenue increased 13.4% to $6.6 million compared to $5.9 million;
• Gross Profit increased of $1.8 million compared to $1.6 million; Gross Margin of 27.4%;
• GAAP Operating Income of $0.4 million compared to $0.0 million;
• GAAP Net Income and Earnings per Share (EPS) of $0.4 million and $0.04 compared to a GAAP Net Loss and Loss per Share of ($0.1) million and ($0.01), respectively;
• Non-GAAP Income and EPS of $0.4 million and $0.04 compared to Non-GAAP Net Income and Income per Share of $0.1 million and $0.01, respectively.

Fiscal 2024 Commentary

"With the Hollywood strikes now behind us, the industry can jump start the production and release schedules and our customers, the cinema owners, which were not able to budget their expenditures with any confidence during the strike, can now start planning as well. Our initial fiscal 2024 guidance, which only included our legacy business and not our newer and emerging businesses, for low double-digit revenue growth with continuing to move towards break-even on a non-GAAP basis, took these delays into account with a down second quarter and a stronger second half of the year.

"That said, we continue to see multiple upside opportunities from our newer initiatives, which aren't included in our current guidance. For instance, our guidance doesn't include any sales of LEA Professional smart power amplifiers, but, in the second fiscal quarter, we already announced two orders for these products, and there is ongoing evaluation and testing occurring at more cinemas as we speak. Additional areas of potential upside include: an ADA compliance product refresh at a large national circuit that we are working to lock down; order growth in Esports shipments above the modest fiscal 2023 levels; National Amusements rolling out CineQC to its international locations; initial sales of MiTranslator and other international sales. Given these significant opportunities to accelerate growth, we plan to provide updates throughout the year as our growth initiatives hit milestones," concluded Rafnson.

Dial-in and Webcast Information

Date/Time: Tuesday, November 14, 2023, 12:00 p.m. ET

Toll-Free: 1-877-407-4018

Toll/International: 1-201-689-8471

Call me™: Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ Link for instant telephone access to the event. Call me™ link will be made active 15 minutes prior to scheduled start time.

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1642336&tp_key=f7b20dddac

Telephone Replay

Replay Dial-In: 1-844-512-2921 or 1-412-317-6671

Replay Expiration: Tuesday, November 28, 2023 at 11:59 p.m. ET

Access ID: 13742538

Telephone Replays will be made available after conference end time.

About Moving iMage Technologies

Moving iMage Technologies is a leading manufacturer and integrator of purpose-built technology solutions and equipment to support a wide variety of entertainment applications, with a focus on motion picture exhibitions, sports venues and eSports. MiT offers a wide range of products and services, including custom engineering, systems design, integration and installation, enterprise software solution, digital cinema, A/V integration, as well as customized solutions for emerging entertainment technology. MiT's Caddy Products division designs and sells proprietary cup-holder and other seating-based products and lighting systems for theaters and stadiums. For more information, visit www.movingimagetech.com.

Forward-Looking Statements

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

Use of Non-GAAP Measures

The Company uses non-GAAP net income/loss and earnings/loss per share as a measure customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that the elimination of one-time items and non-cash stock compensation expense is useful in evaluating our core operating results and when comparing results to prior periods. However, non-GAAP metrics are not a measure of financial performance under GAAP in the United States of America and should not be considered an alternative to net income as an indicator of our operating performance.

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